Treasurer Joe Hockey has lashed out at critics of his first budget, saying claims his policies are ''unfair'' are reminiscent of ''class warfare'' from the 1970s.

In a spirited speech at the Sydney Institute, Mr Hockey on Wednesday night said the view that his budget would exacerbate inequality was unfounded and criticism of his budget strategy was ''political in nature''.

"Criticism of our strategy has been political in nature": Treasurer Joe Hockey. Photo: Alex Ellinghausen

Mr Hockey has also defended some of his budget's most controversial measures - such as the $7 GP co-payment and unregulated university fees - saying they do not spell the end of universal healthcare or restrict access to education.

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''The government is open to criticism and debate about our budget. However, we owe it to the community to set the facts straight and articulate the reasoning behind our decisions,'' the Treasurer said.

''Criticism of our strategy has been political in nature and has drifted to 1970s class warfare lines, claiming the budget is 'unfair' or that the 'rich don't contribute enough'.

''I would argue that the comments about inequality in Australia are largely misguided, both from an historical perspective, and from the perspective of the budget.''

But his message will be challenged by Labor when Opposition Leader leader Bill Shorten renews his attack on the Coalition government's ''unfair cuts'' at a welfare conference on Thursday.

Mr Shorten will tell an Australian Council of Social Services conference in Brisbane that the Coalition's budget is puts big business before individuals.

He will accuse the government of allowing multi-national fims to evade tax in Australia. ''This lax approach to tax evasion is especially galling at a time when the government is making cruel and unfair cuts to our pensioners, our schools and our hospitals,'' he will say.

And Greens senator Rachel Siewert has also hit back at Mr Hockey's claims, tweeting that the budget was ''blatantly unfair''.

Shadow treasurer Chris Bowen said on Thursday that Mr Hockey had a ''massive credibility problem''.

''It was a pretty pathetic attempt to defend a pathetic budget,'' he told ABC radio.

Mr Hockey is introducing a ''massive social welfare scheme'' through the paid parental leave program contradicting his rhetoric about reducing government handouts, Mr Bowen said.

Responding to Mr Hockey's speech on Thursday, Australian Medical Association president Brian Owler took issue with the Treasurer's assessment that Commonwealth spending on health was unsustainable.

''Back in 06-07 the proportion of the federal budget spent on healthcare was about 18.1 per cent. This year it's down to 16.1 per cent. So federal government expenditure on health is not unsustainable, in fact it’s actually been falling,'' he told reporters in Canberra.

Mr Hockey said concerns about the demise of universal healthcare or higher education accessibility invoked mantras that reopened debates ''that were had, and lost, 30 years ago.''

''Universal healthcare has not been free to the consumer since before I was born,'' he said.

''Higher education has not been free since Labor introduced fees in 1987.''

The Treasurer said his first budget was based on the premise that it is fair to expect those who have the capacity to pay should accept more personal responsibility for their cost of living, the cost of raising their children, their health services and their education.''

''And it is unfair to keep a system intact that is clearly not encouraging participation and personal responsibility.''

Mr Hockey said the OECD says income distribution from taxpayers to tax receivers in Australia was more comprehensive and broader ''than any other country in the world''.

He highlighted Youth Allowance, the Age and Service pensions, and the disability support pension as four payments that contributed to this culture of welfare.

''[And] it should not be taboo to question whether everyone is entitled to these payments,'' Mr Hockey said.

It was not the job of government to pursue equality of outcomes but equality of opportunities, he said.

''It is not the role of government to use the taxation and welfare system as a tool to 'level the playing field'. We must use the levers of government to help those who are vulnerable and frail.

''But a just and fair society must not seek to penalise those who aspire to be better. We must reward the lifters and discourage the leaners,'' he said.

''This is what the budget sets out to do and this is what the government is determined to achieve.''

400 comments

The person that been shouting “class warfare” all over the country is Joe Hockey, which is an unmistakable acknowledgement that he recognises that his ‘war on low income earners’ is inequitable, unpopular and deeply divisive. He has clearly declared that his goal is to dismantle the welfare, education and health systems in Australia and replace it with the neo-con ‘user pays’ model and his budget is specifically targeted to do just that without causing any discomfort to the wealthy and well off. So if “class warfare” has raised its head again in the Australian political landscape it is because ‘the ruling class’ have made it so, it is Joe Hockey and Tony Abbott who are promoting “class warfare” and it is they who fired the first shots – none of the budget measures were mentioned prior to the election, in fact it was quite the reverse - so they have no right to criticise, intimidate and bully the majority of the population for being deeply opposed to this budget and to those who designed it. Call it what you like Joe “class warfare”, ‘class division’, ‘social inequality’ ‘unfair distribution of wealth and resources’ it amounts to the same thing, it is good for only a few and unfairly persecutes and burdens the many. The equality of classes in Australia since the end of WWII is specifically because of our progressive and universal welfare, education and health systems and removing those key elements of our society will inevitably make the lives of the ‘working class’ more difficult and oppressive. Ross Gittins said it on Monday: “It’s the ‘end of entitlement’ for people in the bottom half, but no change to the entitlements of the well off.”

Commenter

Dreyfus

Location

Grafton

Date and time

June 12, 2014, 7:31AM

+100 Well said

Commenter

JG

Date and time

June 12, 2014, 8:33AM

I read an article in another news outlet and the comments mentioned women under 30 who have to give up their job because they become pregnant. They will receive no money until they have the baby so until then they are penniless. I had not thought about this, may someone might have some ideas if this would be correct.

Commenter

Maureen

Date and time

June 12, 2014, 8:35AM

Does anyone take seriously anything that that great big bag of wind ever says?He is gold medal hypocrite to the point of being a joke.

Commenter

nkelly

Date and time

June 12, 2014, 8:36AM

Totally agree!

Commenter

Tone

Location

Melbourne

Date and time

June 12, 2014, 8:44AM

It won't pass regardless of how fair he thinks it is. Funny.

Commenter

trollup

Date and time

June 12, 2014, 8:47AM

Hockey is getting more open about the strategies behind the budget and it's all about his stupid, narrow, privileged view of the world. Two quotes from his speech: "It is unfair to keep a system intact that is clearly not encouraging participation and personal responsibility" and reference to "lifters and leaners."He's admitting that the budget measures are designed to make life very hard for anyone who doesn't have a job, whether through lack of available jobs, a disability or age. That would be fine if there was some kind of filter that only punished the tiny percentage who rort the system. That's the first step Joe. Find a way to do that then by all means discourage the rorters, but provide a dignified living for those in the community who genuinely need our help. And don't whine about not having enough revenue coming in - that's where the real rorts are - fix the tax system. That's what Australians want you to do Joe - collect a fair share of taxes from all profits made in Australia by individuals and all other entities and be kind to those in our society who need help. That's K-I-N-D Joe - look it up.

Commenter

jessie

Date and time

June 12, 2014, 8:48AM

Hockey said that the carpenters tax dollars will should not have to pay for the university graduates costs. Well lets say the graduate graduates in arcitechure and he designs a building that needs carpenters....Duh!

Commenter

trollup

Date and time

June 12, 2014, 8:49AM

"'We must reward the lifters and discourage the leaners,'' he said."

Please Mr Hockey, give me a bona fide example of someone who falls into this "leaner" category. Not just one of these mythical stereotypes dredged up by right wing shock-jocks. A bona fide example. Is it the public servants or scientists you are laying to waste? I just want to be clear on that point.

Because the "leaners" that I see in society, are the indolent rich who claim rent on their amassed wealth, and claim everyone else is receiving too much pay for their time/labour. The lazy I see are the people earning $275 K pa, with a take home of $140 K pa (nearly $3000 pw) who whinge about a rich levy and increased tax!

Joe, your policies go way too far. Time for a DD, so grow a pair Bill Shorten!

Commenter

Mary Johnson

Date and time

June 12, 2014, 8:50AM

Pooling finances for equitable health, education and support services is what I expect my tax dollars to go towards, not systems that reward those who have had a head start in life financially and socially. The liberals are completely ignorant towards many experiences and factors that can undermine an individual or family. Their fantasy of self responsibility does not translate into a fair society and it does not help people to better themselves, it promotes self interest.

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